Leonardo Spa · MIL:LDO

Leonardo Spa — Finmeccanica — 9M 2006 Earnings Presentation

14 slides from Leonardo Spa's earnings presentation, Nov 14, 2006

  1. Slide 1: Finmeccanica Nine Month 2006 Results Presentation

    Finmeccanica Nine Month 2006 Results Presentation Alessandro Pansa Co-Director General/ CFO John D. Stewart VP Investor Relations Rome, 14 November 2006

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement • NOTE: Some of the statements included in this document are not historical facts but rather statements of future expectations, also related to future economic and financial performance, to be considered forward-looking statements. These forward-looking statements are based on

  3. Slide 3: 9M 2006 Financial Highlights

    9M 2006 Financial Highlights • Value of production up 18% to Eur 8.9 bn (+9% like for like). • Ebit up 16% to Eur 472 mln (+12% like for like) driven by Aeronautics, Defence Electronics, Helicopters, Energy and by cost cutting measures. • Net profit, excluding Ansaldo capital gain, increases to Eur

  4. Slide 4: 9M and 3Q 2006 Highlights

    9M and 3Q 2006 Highlights (Eur mln) 9M 06 Change % 9M 05 3Q 06 Change % 3Q 05 Net Profit 612 n.s. 180 37 (51) 76 Net Profit pre-extraord 207 +13 180 Value of Production 8,907 +18 7,554 2,942 +14 2,591 EBIT 472 +16 406 167 +7 156 EBIT % 5.3% 5.4% 5.7% 6.0% Operating cash flow (740) n.m. (505) End Sep

  5. Slide 5: Balance Sheet Highlights

    Balance Sheet Highlights (Eur mln) 30/09/2006 31/12/2005 30/9/2005 30/6/2006 Net fixed assets 6,193 5,653 5,594 5,982 Net working capital 894 17 1,279 249 Net invested capital 7,087 5,670 6,873 6,231 Shareholders’ equity 4,949 4,598 4,638 4,815 Net debt 2,184 1,100 2,245 1,462 ƒ Increase in net fixe

  6. Slide 6: Confirming our Guidance for 2006 and 2007

    Confirming our Guidance for 2006 and 2007 2006 2007 Revenues €12.7-13bn €13.6-14bn EBIT €840-860mln €960-1,000mln • Average Free Operating Cash Flow per Year (2006-08) of ca. €300mln • Dividend policy: increase together with profits • Optimal capital structure: Net debt/Equity < 35-40% • Net bank de

  7. Slide 7: Business Review

    », “7 FINMECCANICA Business Review

  8. Slide 8: Helicopters: strong performance continues.

    Helicopters: strong performance continues. (Euro mln) 9M 06 Change% 9M 05 Q3 06 Change% Q3 05 3Q 03 Value of Production 1,974 15% 1,721 626 14% 551 EBIT 183 5% 174 48 0% 48 EBIT Margin 9.3% - 10.1% 7.7% - 8.7% Orders 3,328 15% 2,892 507 7% 472 ƒ Orders for A119, A109 Power, Grand and AW139 from Mexi

  9. Slide 9: Defence Electronics – Promising opportunities in UK.

    Defence Electronics – Promising opportunities in UK. (Euro mln) 9M 06 Change% 9M 05 Q3 06 Change% Q3 05 Value of Production 2,565 33% 1,922 825 16% 712 EBIT 125 10% 114 26 (21%) 33 EBIT Margin 4.9% - 5.9% 3.2% - 4.6% Orders 2,195 (35%) 3,367 541 4% 518 New Defence Electronics activities aquired from

  10. Slide 10: Aeronautics: strong civil supports growth.

    Aeronautics: strong civil supports growth. (Euro mln) 9M 06 Change% 9M 05 Q3 06 Change% Q3 05 Value of Production 1,535 8% 1,415 569 21% 469 EBIT 115 16% 99 54 6% 51 EBIT Margin 7.5% - 7.0% 9.5% - 10.9% Orders 1,427 (33%) 2,116 256 (76%) 1,049 - - ƒ Production rises due to increased ATR activity wit

  11. Slide 11: Space: outlook improving for services

    Space: outlook improving for services (Euro mln) 9M 06 Change% 9M 05 Q3 06 Change% Q3 05 Value of Production 518 (5%) 547 170 (3%) 176 EBIT 22 (8%) 24 6 20% 5 EBIT Margin 4.2% - 4.4% 3.5% - 2.8% Orders 515 56% 330 184 n.s. 63 ƒ Orders improve due to higher civil TLC intake ƒ Operating profits for Se

  12. Slide 12: Defence Systems – Missile export outlook improves

    Defence Systems – Missile export outlook improves (Euro mln) 9M 06 Change% 9M 05 3Q 06 Change% 3Q 05 Value of Production 751 6% 706 239 1% 236 EBIT 38 (10%) 42 16 (27%) 22 EBIT Margin 5.1% - 5.9% 6.7% - 9.3% Orders 496 23% 403 158 n.s. 71 Including 25% of MBDA and 100% of Oto Melara and WASS ƒ Missi

  13. Slide 13: Civil: Energy & Signalling strong, Vehicles challenging

    Civil: Energy & Signalling strong, Vehicles challenging (Euro mln) 9M 06 Change %9M 05 3Q 06 Change % 3Q 05 Value of Production 1,005 12% 899 316 1% 313 EBIT 39 n.s 5 12 (33%) 18 Transportation EBIT Margin 3.9% 0.6% 3.8% - 5.8% Orders 1,738 25% 1,394 595 7% 558 (Euro mln) 9M 06 Change % 9M 05 3Q 06

  14. Slide 14: IR Contacts

    IR Contacts Investor Relations Finmeccanica: Piazza Monte Grappa 4, 00195 Rome – Italy E-mail: investor_relations@finmeccanica.it Website: www.finmeccanica.it • John Douglas Stewart Vice President Investor Relations • Emilia Iannicelli Tel. +39 06 32473.290 IR Event Coordinator Tel. +39 06 32473.520

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